Lietuvos kapitalo rinkos efektyvumas

ENThe report analyzes the essence of the Efficient Market Hypothesis (EMH) and three forms of the Efficient Market Hypothesis. An efficient market is the one where all new information is quickly understood by market participants and becomes immediately incorporated into market prices. It is not possible to make profits by looking at old information or at patterns of past price changes because the price movements of stocks are completely unpredictable over time. They look like a random walk if charted over period of time. The reason for such behavior of prices is the following : in an efficient market all predictable things have already been built into the price. The report examines all tests of the efficiency of the Lithuanian capital market, describes methodics of these tests and presents the results of survey of the efficiency of the Lithuanian capital market.